Business Services Industry
Bank regulators ease up on maximum loan levels - loan-to-value regulations go from mandatory to suggested levels
Real Estate Weekly, Nov 18, 1992
Industry lobbying efforts paid off when federal banking regulators changed their proposed maximum loan-to-value regulations from mandatory to suggested.
Expected to go into effect in March of 1993, the new rules were written by the nation's four regulatory agencies -- The Federal Deposit Insurance Corporation, Federal Reserve, Office of the Comptroller of the Currency, and the Office of Thrift Supervision -- under a 1991 mandate. Draft proposals, one of which was loan-to-value ratio, were issued in June.
"It's a slight distinction, but a very important one," said Cary Brazeman, spokesperson for the National Realty Committee, which was instrumental in the change.
As the plan now reads, Brazeman said, a borrower's credit worthiness, cash flow from the property and other elements can be considered as reasons for exceeding the suggested limits.
Ceilings now recommended by the regulators in their proposal are: 65 percent for raw land; 75 percent for land development; 80 percent for non-residential construction; and 85 percent for one- to four-family residential construction and improved property loans. A maximum was not placed on residential mortgages or home equity loans where the borrower obtains private mortgage insurance. The new guidelines would also not apply to restructured loans.
Most Recent Business Articles
- Your feedback
- Why fly solo when an executive assistant can accelerate your CLNC® business?
- The CLNC® mentors held the key to my first case and to my CLNC® success
- Atlanta CLNC® 6-day certification seminar photo galleryplus sign up today for spring 2009 to save $100.00
- Announcing the 2009 NACLNC® conference keynote speaker, Stedman Graham: move like a maverick for breakaway CLNC® success at the 2009 NACLNC® conference
Most Recent Business Publications
Most Popular Business Articles
- Using object-oriented analysis and design over traditional structured analysis and design
- Big Fish Games Migrates Upstream to Fisher Plaza; High Growth Online Gaming Firm Vaults Fisher Plaza Occupancy Rate Above 90%
- Top of the line: some of the world's most well-respected doctors practice in South Florida. A guide to choosing the best physician specialists - Top Doctors in South Florida
- Sand filter basics: high-rate sand filters can be confusing for those new to the business. Understanding valve modes is the key
- BEHR Paints Introduces a Colorful New Way to Paint and Prime All in One with BEHR Premium Plus Ultra™ Interior

